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Analyst Puts Bitcoin Bottom At $50,000, Here’s Why

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Picture of a bitcoin with a green trend line pointing down


With bitcoin rallying, all the focus has been on predicting where the price of the asset will be by the end of the year. The digital asset is undoubtedly going to enter a period where various crashes will send the price down, popularly known as a bear market. Not a lot of attention has been paid to where the price of the asset might bottom out when the market inevitably goes into another bear market.

This usually long stretch of low momentum has seen bitcoin lose 94%, 87%, and 84% of its peak value respectively in the last three bear markets. One recurring theme of the bear markets has been the diminishing percentages of total value lost. At this rate, it is expected that BTC will see between 75% and 80% loss from its peak this cycle. Market analyst Justin Bennett uses this to predict where BTC will bottom out next.

The Next Bitcoin Bottom

Bennett put the next bitcoin bottom at $50,000 after analyzing the possible price movements of the digital asset. With the current cycle, the analyst sees the price of bitcoin hitting $200,000 before the bull run is over, hence a 75% to 80% pullback in a bear market will see the bottom of the asset land around the $50,000 range.

Related Reading | Bitcoin Leads Charge Of Large Cap Altcoin Dominance In October

This bottom is solely based on the cryptocurrency hitting the price range that Bennett expects the asset to peak at by the end of the rally. If BTC does not hit this price point before the bull rally is over then we might see a BTC bottom land at a much lower price range.

BTC goes into the red ahead of Friday opening | Source: BTCUSD on TradingView.com

Bennett’s pullback analysis has a lot of credit given that markets are historically known to see lower pullbacks as assets mature. So the 75% to 80% mark does resonate with what the market is known to do. However, if the price of BTC falls short of Bennett’s prediction or doesn’t move the needle much from its current price point, then the BTC bottom may land in the $10,000 to $15,000 range using the pullback analysis.

The Peak Before The Fall

Bennett’s analysis did not focus solely on the crash of the digital asset. He put forward his argument for the price of BTC at $200,000 using technical analysis of the market. The analyst points to Fibonacci extensions as indicators of where the price of bitcoin may peak during this cycle.

For the Fibonacci extensions, comparisons between the 2.272 and 2.414 extensions from previous cycles have both given a target area which the asset had hit both times. Going by this, Bennett sees the asset peaking between $207,000 and $270,000 before the current cycle is over.

Related Reading | Bitcoin New All-Time Cleared, $100,000 Straight Ahead?

Moving forward, the analyst plans to use the monthly RSI to time market exits “Notice how BTC tends to end cycles when the monthly RSI reaches above 90,” Bennett says. “It’s also exhibited a double top pattern each cycle, which leads me to believe it happens again.”

Bennett plans to use a combination of net unrealized profit/loss (NUPL) and the monthly RSI to slowly exit the asset over the next couple of months.

Featured image from YouTube, chart from TradingView.com



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Regulation

Popularity of Crypto Investments Makes Case for Regulations, Australian Securities Watchdog Says – Regulation Bitcoin News

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Popularity of Crypto Investments Makes Case for Regulations, Australian Securities Watchdog Says


High rates of crypto ownership, with purchases often made on advice from Youtube and Facebook, make “a strong case for regulation,” according to the Australian Securities and Investments Commission. The watchdog backs its stance with poll results showing nearly half of retail investors in Australia keep one coin or another.

Australian Securities Regulator Pushes for Rules to Protect Cryptocurrency Investors

Pressure on Australia’s new Labor government is mounting, to put an emphasis on consumer protection as it takes over a task from the preceding conservative government to adopt a regulatory policy regarding digital assets like cryptocurrencies. A years-long study on the matter, initiated by the former cabinet, is yet to answer the relevant questions of whether and how to do that.

According to a survey conducted by the Australian Securities and Investments Commission (ASIC) in November, 44% of over 1,000 retail investors admitted to holding cryptocurrency. The results indicated that crypto is the “second most popular investment after Australian shares,” Reuters noted in a report. A quarter of the polled investors who held digital coins said they were their only investment.

Statistical data suggesting high rates of cryptocurrency ownership in Australia were dismissed last year by a top central bank official who referred to the numbers as “implausible,” the news agency remarks. But ASIC believes they make “a strong case for regulation.”

Another argument for that, besides the high popularity of crypto, is the finding that 41% of respondents sought investment insight online, with a fifth of those polled naming the video sharing platform Youtube and at least one in ten pointing to the leading social media network, Facebook. Only 13% gained their info from a financial adviser or broker.

ASIC Chairman Joe Longo expressed the Commission’s concerns about the large number of participants in the survey who reported investing in what he described as “unregulated, volatile crypto-asset products.” The high-ranking official further elaborated:

There are limited protections for crypto-asset investments given they have become increasingly mainstream and are heavily advertised and promoted. There is a strong case for regulation of crypto-assets to better protect investors.

The survey was conducted in the same month when bitcoin (BTC) and ether (ETH), the two most popular cryptocurrencies, hit record highs, Reuters remarks. The prices of both coins have since dropped by about two-thirds, while the Australian stock market is down about 6%.

Part of the reason for that can be found in interest rate hikes that have likely convinced investors to exit speculative assets. Their retreat helped cause the latest crypto market slump and led to the bankruptcy of a number of businesses built around cryptocurrencies.

The popularity of crypto among Australian investors has attracted the attention of other government agencies as well. Earlier this year, the Taxation Office listed crypto-related profits among several priority areas where efforts are needed to ensure correct reporting. The authority reminded taxpayers they need to calculate any capital gains from the sale of coins and tokens and declare it with their tax returns.

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ASIC, Australia, australian, commission, Consumers, Crypto, crypto assets, Cryptocurrencies, Cryptocurrency, Facebook, Investments, Investors, Poll, Protection, Regulation, Regulations, regulator, rules, Securities, Social Media, Survey, watchdog, YouTube

Do you expect Australia to adopt restrictive regulations for cryptocurrency investment? Share your thoughts on the subject in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.




Image Credits: Shutterstock, Pixabay, Wiki Commons, Ms. Li

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.





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Blockchain

Polygon Accommodate 37,000 DApp, Scoring 400% This Year

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Since the beginning of 2022, the number of decentralized apps (DApps) on the Ethereum scaling platform Polygon has surged 400%, hitting 37k. According to a blog post from partnered Web3 development platform Alchemy published by the Polygon team, the 37,000 figure signifies the total apps produced on both the testnet and mainnet.

At the end of July, there were 11.8k monthly active teams, a sign of blockchain developer involvement, a 47.5% increase from March. In addition, the project team offered an overview of dApp projects, noting that “74% of the teams are entirely integrated on Polygon.”

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The Reason Behind Its Surgence

Their collaboration with Alchemy was the driving force behind the expanding number of DApps. The Polygon team noted earlier this year that the increased amount of DApps being developed on the network was a major contributing reason.

~500 dApps in November, now 37,000+ with 11.8k active teams.

“Many projects are increasingly choosing to build solely on Polygon. Alchemy data shows that 74% of teams integrated exclusively on Polygon”

This is because the Web3 platform’s infrastructure makes it “far easier for Polygon developers” to construct DApps.

Cooperation by Polygon and Alchemy Support dApps

The cooperation launched by Polygon and Alchemy in June 2021 aided in increasing the number of dApps on the network from 3,000 in October to 7,000 in January to over 19,000 in April.

Polygon’s native asset, MATIC, has risen by 66.3% in the last month as cryptocurrency markets have turned green and recently exhibited signs of a possible positive revival. MATIC is presently the sixteenth most valuable cryptocurrency asset, having a market capitalization of $6.9 billion.

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Polygon (MATIC) Price and Tokenomics

The current price of Polygon is $0.9241, with a 24-hour trading volume of $498 million. Polygon’s value has risen by 2.50% in the last 24 hours. MATIC is now the world’s 13th most valuable company, with a market capitalization of $7.6 billion.

It can hold up to 10,000,000,000 MATIC coins, but currently only 8,035,303,935 MATIC coins are in circulation.

Polygon (MATIC) Technical Outlook

MATIC Price Chart
MATIC Daily Price Chart – Source: Tradingview

The MATIC/USD is currently trading at $0.9241 after consolidating in a narrow range of $0.8844 to $1.0001. Given the recent 400% increase in dApp registrations on the Polygon network, MATIC may experience a bullish trend.

A surge in MATIC demand could pierce the $1.0001 resistance level, exposing the MATIC price to the next target area of $1.1330. Further to the upside, MATIC’s next resistance level will be $1.2770.

The leading indicators MACD and RSI indicate divergence, with one indicating a buying trend and the other indicating a selling trend. However, the 50-day EMA is in support of a buying trend.

On the support side, MATIC at $0.8844 is likely to be supported by the upward trendline. On the other hand, a bearish breakout could push Polygon’s price down to $0.7635. Consider staying bullish above the $0.7635 level and vice versa. Good luck!

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Cosmos Hub Soars Over 5% Within 24 Hours

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Cosmos


Cosmos (ATOM) coin buyers have clasped on the $10 level as its support zone.

  • Cosmos (ATOM) coin soars by over 5% as seen in the past 24 hours.
  • ATOM still fluctuates wildly as observed in the upwards parallel channel.
  • Coin’s price has made impressive traction and surged by 13% in the past week.

According to CoinMarketCap, ATOM is having a sweeping uptrend at $12.09 or an impressive spike of 4.46% as of this writing. Currently, ATOM’s ATH is set at $44.45 which means the bulls have to work a bit harder than usual to push the price further up.

ATOM’s Trading Volume Spikes 102.0% In Past Week

The daily chart shows the volatility and price movement for Cosmos Hub (ATOM). Currently, ATOM’s trading volume has spiked by 102.0% as seen in the past week. The total circulating supply or volume of ATOM has however dropped by 0.27%. As of now, ATOM ranks as the 28th largest crypto in terms of the market cap which is currently at $3.47 billion.

It seems the bears moved away from ATOM as the bulls continue to drive the price higher. Cosmos Hub has had an impressive rally seen in the past couple of weeks due to aggressive buying pressure. ATOM coin is seen to be consistently moving upwards for the past few weeks. More so, the bulls were also re-energized after they revisited the coin’s support line.

In the event that the buyers breach ATOM’s resistance zone, the buyers are optimistic about a 60% ROI in the coming days. Buyers are definitely pushing the price up with $10 poised as the support zone and the $12.5 level as the bullish hurdle.

Cosmos: $20 On Target

Buyers are constantly eyeing the next resistance zone as a breach on this level may propel the asset’s price to an uptick peaking at $20.

ATOM’s market cap has spiked by 4.8% overnight or registered at $3.4 billion. The increase in trading volume also hints at the surge of buying momentum. ATOM’s RSI also shows that it was able to break the falling trendline and near the oversold mark. Moreover, the coin’s MACD also indicates a bullish movement for ATOM.

Buyers are looking forwards to the bulls breaching and hovering above the resistance zone of $12.5. Despite the hurdles that the bulls face, buyers are positive that a 60% spike is possible from the current level and may in fact pump the price to $20.

ATOM total market cap at $3.35 billion on the daily chart | Source: TradingView.com

Featured image from CoinCentral, Chart from TradingView.com



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